Chamkharchhu-II project under study with GMR

2026-03-30 - 13:21

The 590 MW Chamkharchhu-II project has been identified for implementation in partnership with an Indian multinational infrastructure conglomerate, GMR Group, with detailed investigations and studies expected to be completed by the end of 2027. Based on the techno-economic viability determined through these studies, Druk Green Power Corporation (DGPC) and GMR will consult on taking the project forward. Project agreements are already under discussion. DGPC is also in various stages of discussions with JSW Neo Energy, Reliance Infrastructure, PTC India, and Carbon Resources regarding the allocation of projects, additional investigations and studies, agreements to be entered into, and financing and power sales arrangements. Before allocating any project for joint implementation, all necessary technical and financial due diligence will be completed. DGPC has also entered into a number of Memorandums of Understanding (MoUs) for partnerships to develop solar projects. Under its strategic partnership with Tata Power, DGPC began construction of the 600 MW Khorlochhu project at the start of 2025, marking the first major hydropower project under the collaboration. This was followed by the initiation of pre-construction works for the 1,125 MW Dorjilung project in early 2026. These projects are being implemented through Special Purpose Vehicles formed under the joint management of the shareholders. Discussions are ongoing to take forward additional hydropower and solar projects in consultation with the Royal Government of Bhutan (RGoB) under the broader 5,000 MW umbrella MoU. Similarly, under its strategic partnership with Adani Power, DGPC has commenced pre-construction works for the 570 MW Wangchhu project in early 2026 following progress on key agreements, including the Concession, Shareholders, and Power Purchase Agreements. DGPC and Adani Power are also discussing the next set of projects to be implemented under the 5,000 MW umbrella MoU in close consultation with the RGoB. In addition, several MoUs have been signed with entities from Singapore, Thailand, Korea, and Kenya. Bhutan continues to receive expressions of interest from international partners for the development of its hydropower and solar resources, which are currently under consideration. A number of MoUs have also been signed with Bhutanese private companies and individuals for the development of small hydropower projects with capacities of less than 100 MW, with several of these projects ready for implementation. While most of the MoUs focus on hydropower, some also include solar projects.